Flexport’s Potential Workforce Reduction
Flexport, a prominent logistics company backed by $2.7 billion in venture and debt funding, is reportedly considering further layoffs.
According to Information, the company is contemplating reducing approximately 20% of its workforce in the coming weeks. When contacted for comment, Flexport’s communications head Liyan Chen declined to provide any response to the report.
In October, Flexport underwent a significant restructuring when its founder, Ryan Petersen, returned as CEO and implemented workforce cuts of 20%, affecting approximately 600 employees.
Another round of layoffs at Flexport would mark a challenging start to the year for tech workers, with numerous companies, both large corporations and startups, having already eliminated tens of thousands of jobs across the industry. While workforce reductions are not uncommon in the tech sector, the timing of such a move by San Francisco-based Flexport would raise eyebrows.
Just last week, Flexport announced a substantial funding round of $260 million from Shopify, further solidifying the partnership between the two companies. This recent deal follows a previous arrangement in May when Shopify divested its logistics business to Flexport in exchange for a 13% stake in the company.
Among Flexport’s notable investors are Softbank and Andreessen Horowitz.
